How Canada's new immigration plan could hit Indian students and jobseekers

Canada unveiled its Immigration Levels Plan for 2026–2028, maintaining a steady intake of permanent residents at 3.80 lakh per year while sharply reducing the number of temporary residents, including international students and temporary foreign workers. The plan aims to balance arrivals with departures and stabilise the temporary resident population at less than 5% of the country’s total population by the end of 2027.

Lena Metlege Diab, Minister of Immigration, Refugees and Citizenship, said, “We will balance the number of new arrivals with the planned departure of international students and temporary workers as their status expires in 2025 and 2026. We have committed to reduce temporary resident volumes through departures, program limits, and lower immigration levels to less than 5% of the population by the end of 2027.”

Under the new plan, the number of international students will be almost halved, with only 1.55 lakh students allowed in 2026, declining slightly to 1.50 lakh in 2027 and 2028. This is a steep drop from last year’s projection of 3.05 lakh students for 2026. Similarly, temporary foreign worker permits will be capped at 2.30 lakh in 2026 and 2.20 lakh in the following two years.

ALSO READ: Canada announces fast-track immigration pathway for H-1B visa holders, launches new plan to attract global talent

Temporary Resident Admissions (2026–2028)



Impact on Indian students and workers

Canada is proposing new powers to cancel temporary visas, citing rising concerns over fraud in applications from India and Bangladesh. The measure, part of Bill C-12, would allow authorities to cancel groups of visas in exceptional cases, including for visa holders from specific countries. According to internal documents reviewed by Reuters, Indian student visa applications have faced a steep rise in rejections, with about 74% of applications rejected in August 2025, more than double the previous year. The government has detected thousands of fraudulent letters of acceptance and has introduced stricter financial and documentation requirements to curb misuse.

ALSO READ: Canada’s 2026–2028 immigration plan to grant Permanent Residency to over 30,000 work permit holders

The tightening of rules has already affected Indian students and universities. As per Reuters report, enrolment at institutions such as the University of Waterloo, the University of Regina, and the University of Saskatchewan has declined sharply over recent years, impacting diversity and academic programs. Processing times for temporary resident visas have lengthened, and approvals have dropped as more resources are devoted to verification and fraud checks.

While the Indian embassy in Ottawa acknowledges the challenges, it highlighted that Indian students have historically contributed significantly to Canadian institutions.

Canadian authorities emphasise that the measures aim to protect the integrity of the immigration system while ensuring that genuine applicants can continue to study and work in Canada.